Law firm files class action lawsuit in LIBRA token scandal

Burwick Law filed a collective appeal in New York against Kelier Ventures, Kip Protocol and Meteora, accusing them of having made a deceptive launch in the scandal of the Balance tokens.

According to the trial submitted on March 18, the developers of the token secretly handled liquidity to defraud the retail merchants of millions of dollars while misleading investors with false promises.

The balance was marketed as an initiative aimed at stimulating the economy of Argentina, even obtaining the support of President Javier Milei. However, the token developers would have inflated prices using a unilateral liquidity pool rather than a fair launch.

To maintain control of the value of the token, they retained 85% of its supply. The initiates would have withdrawn $ 107 million at the start of trading, which led to a price collapse of 94%. The court documents claim that this has enabled initiates to “discreetly and systematically extract stable assets” of without distrust buyers.

In addition to requesting a return for affected investors, Burwick Law hopes to stop future scams of this nature. In a similar development, on March 12, the Argentinian lawyer Gregorio Dalbón request A Red Interpol opinion for Hayden Davis, the CEO of Kelsier, saying that his wealth would allow him to escape.

A red opinion is essentially an interpol alert asking the world police to temporarily locate and arrest a person while waiting for extradition.

The balance token was launched on Solana (GROUND) February 14 and quickly reached a market capitalization of $ 4.4 billion before crashing, annihilating more than $ 280 million in nearly 75,000 merchants. Nicknamed “cryptogate”, the controversy has given rise to multiple allegations of initiate and market manipulation.

According to a March 14 report By crypto.News, initiates such as Kelers Ventures were able to access the balanced tokens before the launch of the public, which reports more than $ 100 million thanks to the first trades and liquidity provisions.

Beyond the legal action, the scandal of the memecoin balance attracted political attention. Opposition politicians in Argentina called for the dismissal of Milei, citing allegations of fraud. Analysts say that the crisis could affect the image of Milei as a leader focused on economic recovery and the fight against corruption as the elections in mid-term later this year.